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Can I Reaffirm My Car Loan In Bankruptcy?

Entering into a bankruptcy often raises a lot of unanswered questions. You don't know what is going to happen to your financial situation, and one of your big worries most likely is what is going to be taken away from you as a result of this. The first thing to keep in mind is that 

Entering into a bankruptcy often raises a lot of unanswered questions. You don't know what is going to happen to your financial situation, and one of your big worries most likely is what is going to be taken away from you as a result of this.

The first thing to keep in mind is that bankruptcy is a form of debt relief and not a form of punishment because you ran into financial difficulty. The bankruptcy courts know that you still need to be able to live properly after straightening out your financial situation. You need a roof over your head, and may need your vehicle so you can get to work or attend to other important necessities.

Your vehicle is probably one of your secured debts that are on your list of creditors. This means that the creditor can repossess your vehicle if you are not able to pay for you. You may be able to work out a payment deal with the creditor of your vehicle. If you are going to do this then you need to indicate on your bankruptcy paperwork that you intend to keep your vehicle. The bankruptcy courts do not just automatically allow this. You will have to prove to the courts that there is a good reason for keeping the car and that the payments you are agreeing to make are reasonable. Making these payments cannot create an undo hardship for you or your household.

Reaffirming your car loan is something you need to discuss with your Louisville bankruptcy lawyer right at the start of your bankruptcy filing.

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